The construction sector has seen its biggest contraction since the purchasing manager’s index began 23 years ago.

The survey by IHS Market and the Chartered Institute of Procurement and Supply monitors purchasing trends among decision makers at companies across a variety of sectors.

The CIPS warned that the impact of this steep fall would knock the building industry back by a decade.

Figures released today show that the index tracking the construction sector plunged to a low of 8.2 in April from 39.3 in March, falling well below the previous low of 27.8 recorded during the 2009 financial crisis.

The vast majority of survey respondents (86 per cent) reported a reduction in business activity since March.

All three main categories of construction work experienced a survey-record fall during April, with declines in house building and commercial activity exceeding that for civil engineering.

IHS Markit economics director Tim Moore says:“The rapid plunge in UK construction output during April stands out even in a month of record low PMI data for the manufacturing and service sectors. 

“Widespread site closures and business shutdowns across the supply chain meant that vast swathes of the construction sector halted all activity in response to the covid-19 pandemic.

“House building and commercial work were unsurprisingly the hardest hit, but civil engineering activity also fell at by far the fastest pace since the survey began in April 1997.

“A drop in construction activity of historic proportions in April looks set to be followed by a gradual reopening of sites in the coming weeks, subject to strict reviews of safety measures.

“However, the prospect of severe disruption across the supply chain will continue over the longer-term and widespread use of the government job retention scheme has been needed to cushion the impact on employment.

“Looking ahead, construction companies widely commented on worries about cash flow, rising operating costs and severely reduced productivity, as well as a slump in demand for new construction projects.”

Chartered Institute of Procurement & Supply group director Duncan Brock adds: “April’s figures delivered more worrying news for fragile construction businesses as the effects of the coronavirus continued to ripple across supply chains, devastating all

productivity in its wake. Though a fall in output was not a complete surprise, the scale and suddenness of the drop has knocked the wind out of building work in theUK.

“More vulnerable than other sectors that make up the UK economy, construction was unable to continue in any significant capacity, as companies grappled with furloughed staff and building sites under complete shutdown.

“Only a few civil engineering and infrastructure projects were able to continue in April, but a tentative restart is expected in other areas such as house building and commercial construction in the short-term. 

“As new plans from policymakers are developed over social distancing, building work may continue but not as we know it as restrictions and new safety rules are likely to make progress more difficult.

“For a sector still not fully recovered from the skills shortages created by the financial crisis in 2008, the vacuum of output created by the pandemic has knocked the sector back another decade.”